Managing and Running a Small Business

This document discusses the key considerations for managing and running a small business, including planning and resource allocation. It also explores customer relationship management, transnational development, and key financial statements. The document provides insights into the Uppsala Internationalisation model, cash flow forecasting, break-even analysis, and key legislation and regulations affecting small businesses.

MANAGING AND RUNNING
A SMALL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key consideration for small business while planning and allocation of resources .....................3
Customer relationship management for small business...............................................................5
Transnational development of small business ............................................................................6
Uppsala Internationalisation model ............................................................................................7
Cash flow forcasting ...................................................................................................................7
Break Even Analysis....................................................................................................................8
Key financial statement of the company .....................................................................................9
key legislation and regulations that have implications on small businesses..............................10
CONCLUSION .............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Management of any small business refers to the process of coordinating and positioning
all the aspects of a small business, it can be management of budget, employees, suppliers or
managing the daily activities (Antcliff, Lupton and Atkinson, 2020). The managing of small
business is done to assure that the things are going in productive way and to achieve the
favourable success. There are different consideration for small business's owner should know for
the success of the enterprise. The customer relationship in context of small business is the
manager uses to focuses to improve the customer satisfaction. Nisa retail limited is a retail of
grocery in United kingdom owned by different members. This report will evaluate the
consideration of small business's, their planing to achieve the organizational goals (Panfilova and
et. al., 2020). The tools and techniques to structure a plan and to allocate the resources with its
importance will be discussed. Further, the customer relationship process of small business's with
its elements will also determined and the way that small business uses to build transnationally to
find the benefits and disadvantages will be explained.
MAIN BODY
Key consideration for small business while planning and allocation of resources
While planning and allocating the scarce resources of Nisa retail limited, the managers have to
keep various consideration in mind so that they plan its productive towards the company end
goal and can optimum utilization of its resources (Farrell And et. al., 2020). The consideration
helps the manager to sustain in the market and to expand in the competitive market.
Help to determine the scope of task: The managers of Nisa have different projects that have
different time periods to complete them, so they have to define the particular scope for the
company before allocating the resources of company. The scope of the task explains the
requirements of resources that are needed to accomplish the task (Guha, Harrigan and Soutar,
2018).
Identification of resources: As the managers of the project now know the scope of the task and
the activities that has to be performed to achieve them, the managers of Nisa identify the
required resources so that they can make an effective planning to allocate the resource and use

them very efficiently. The achievement of task needs finance, human resource, machinery and
other equipment's that are identified by Nisa so that objective gets achieved.
Evaluation of human resources: The evaluation of human resources is also done before
allocation of any resources. The manager directs the human resources to manage the employees
with their role and responsibilities in the organization. The human resource of Nisa identifies the
needs of types of employees that are required by company to achieve the aim and objectives of
the company. The number of employees, their individual skill to perform the job all things are
checked and then plans are made.
Track time: The managers of Nisa have to track the time of work completion of the employees
who are working for the company. It is manager's duty to accomplish the task in allocated time
period. So to identify this the leaders and managers regularly track the team's workload. They
use different effective tools that will help to collect the data.
Tools and techniques used in plan and allocation of resources
There are different tools which are used to develop a good plan and also assist in allocating the
resources of Nisa's.
SWOT analysis tools help the company to structure the plan that is useful for the company.
With the help of this tool the company can find the threats and weakness of the company so that
the managers makes that plans which avoids loss of any untapped potential (Dessi and Floris,
2017). It also helps to use the resources so that there is no wastage and all the resources are
optimally utilized.
Risk mapping is another tool that helps the company in a way by providing necessary
information regarding the causes of risk to Nisa. With this tool the company can develop a plan
that is more effective in nature and that uses its resources very effectively.
Importance of tools and techniques: The methods and process have various benefits to the
company as the allocation of resources is very essential for Nisa retail limited. The tools allow
planning for implementation to achieve the organizational goal and an efficient use of resource
also improves the overall performance.

Customer relationship management for small business
The customer relationship management is a process that involves combination of practise,
approach and techniques that are implemented so that company can easily manage the interaction
of customers. The motive of customer relationship management is to serve the potential
customers in a better way. Entire process also leads to increase the customer retention and this
analysis allows Nisa to interact with the present and past customers (Elo and Vincze, 2019). The
customer relationship management have different stages to manage the small business.
Generate Brand awareness: As the primary work to acquire new customers in order to
introduce them to the business. To make customers aware the management of Nisa have to know
its targeted audience according to demographics, the preferred channels of communication and
other interesting elements to target customers. After targeting the audience the company
segments them into similar group which helps company to identify the types of peoples who can
be the actual customers of the company. After this the campaigns are organized so that the
targeted people can get the required information for Nisa.
Acquire leads: The leads are dependent on the way Nisa has structured their customer
relationship management which assists company to reach to its targeted customers. The Nisa gets
is lead through effective tools and currently company is using email marketing to provide detail
information for it products. They are also created their website very attractive so that people get
more attracted towards the company.
Convert leads into buyers: When company has acquired the lead from targeted audience then
they are focused to convert those particular leads into actual customers. The company inspects
the quality of lead and their interest towards the purchase. The customer relationship
management helps Nisa in this to find out the interested audience and help them so that they buy
the products (Gangadhar, 2018).
Provide superior customer service: When the sale is been made to customers, the next step
includes the retention of customer and for that Nisa provides effective way to develop the
retention power in the potential customers of the company.
Drive up sells: Here the company observes whether the customers are regularly coming back to
the company to buy the products from which they are satisfied. The customer's relationship
management provides opportunity to the business so that they continuously work to retain their
potential customers.

Elements of customer's relationship management
Basically there are four elements of CRM to understand the customer's and the market where
they are doing their business's. The key elements are:
Know: In this element, the company and its manager understands its market with its potential
customers.
Target: The development of different offers are being made to the targeted people in the market
so that they get attracted towards the brand and the product.
Sell: After providing offers to the selected people, the next step is to sell the products to them
and acquire the customers from the market.
Service: As the customer's retention is important to sustain and expand its market, management
of Nisa provides good after sale services so that customers are loyal towards the brand.
Transnational development of small business
The transnationally developing of small business is done through commerce across the countries.
This model is endowed in the foreign assets and operations, basically this means the expansion
of small business by selling its products internationally. There are different country who are
offering different commodities in different nations with maintaining them a identity in different
countries (Neubert, 2018). The transnational development of small business have different
advantages as well as drawbacks.
Advantages
With the help of Transnational approach to develop small business the company can expand Nisa
retail limited globally. The Transnational way help company to recognized itself to the world.
The Nisa can easily introduce new product and modify the older ones in the international market.
Decentralized structure of Nisa has offering cost saving because the production and other
functions are other function are performed in those countries which are having low labour cost.
With the help of transnational approach the distribution and transportation cost has been lowed.
Disadvantages
As each and every investment in business activity have risk so there are some risk which are
existing in transnational approach. The Nisa is having decentralize so the risk are having no
control on different operations in few nations, lesser careful oversight is maintained at

headquarters. As the transnational strategy is expensive in nature so this is the biggest
disadvantage for Nisa. The transnational strategy relies on a great degree with the brand
recognition, as it is virtual require having that brand which are well-organized.
Uppsala Internationalisation model
This theory is describing the process that is internationalized process of the respective
organization. There are basically have four stages to enter the market are :
Step 1: No regular export activities: The small business organization have not that much
production that it can do regular exports of its goods. Likewise, Nisa is small business so the
export of its goods are not occurred on regular basis. Moreover, if the organization will involve
in regular export then it will have certain limitations such as limited financial resources, lack of
knowledge of new market.
Step 2: Export via independent representation: As the Nisa is not having much export if the
organization have to build a good market reach then they have to export their goods on regular
basis. Hence, with the help of regular export practise the company can achieve its objectives
easily and enhance the profit.
Step 3: Establishment of foreign sales subsidiary: This is a legal entity to establishing the
foreign subsidiary. As the legal entity of company help Nisa assist to market the products to local
people. The Nisa is a local presence in the particular market can also expand the brand
recognition and can potential increase the profits.
Step 4: Foreign production: Nisa can increase its customers reaching power by producing its
goods in foreign market so the expenses of export is being skipped.
Cash flow forcasting
Parti
cular
Jan Feb Marc
h
April May June July Aug Sep Oct Nov Dec.
Inco
me
Sales 1000 1200 1500 1600 1700 1650 1500 1800 1750 1600 1900 2000
Total 1000 1200 1500 1600 1700 1650 1500 1800 1750 1600 1900 2000

Expe
nses
Adver
tisem
ent
200 250 250 300 250 270 320 300 250 140 200 300
Salar
y
300 350 350 350 350 350 350 400 420 420 450 450
Electr
icity
100 100 150 120 120 120 150 170 100 150 120 120
Mater
ial
250 250 300 320 320 350 350 420 320 350 350 420
Total
expen
ses
850 950 1050 1090 1040 1090 1170 1290 1190 1060 1120 1270
Profit 150 250 450 510 660 560 330 510 560 540 780 730
Cash flow statement project the positive financial position of the organisation. The cash flow
statement denote the positive situation of the organisation. At the end every month company hold
a positive liquidity position of the organisation. It is further projected that liquidity situation is
increasing. Increased figure is identified in the liquidity position of the organisation.
Break Even Analysis
Break even analysis denote the not profit no loss situation of an organisation. This is the
point where company do not entertain any profit nor any losses. This is the point where company
recover all its expenses incurred to produce the final outputs.
The break even point (in Units) = ( Fixed cost) / ( Selling price per unit – variable cost per unit)
Break even point (in amount) = ( Fixed Cost) / ( Contribution Margin)
= £ 8000 / (£ 12 - £ 8 )
= £ 8000 / £ 4

= 2000
If the company will sale this unit it will reach to its break even position in the business.
= £ 8000 / [(£ 12 - £ 8 ) / £ 12 ]
= £ 8000 / £ 0.33
= £ 24240 approximately is the estimated sales amount that the company should achieve in order
to be in a profitable situation.
Key financial statement of the company
Sales 35000
Less:
COGS 15000
Gross Profit 20000
Less:
Electricity 1500
Salary 4500
Stationary 2000
Refreshment 1500 9500
Net Profit 10500
The above mentioned income statement denote the strong financial position of the
organisation. This indicate that the financial stability of company is strong. Company has
generated positive profitability which further enhanced the overall financial stability of
organisation (Dynarski and et.al., 2018). Income statement is the indicator of company's
profitability and income capacity that further project the positive income of the organisation.
Income statement reflect the income of company in the respective financial year.
key legislation and regulations that have implications on small businesses
The small business is regulated by various government regulations from those regulation
influence the way in which business report paying and income taxes. There are different major
government regulation that impact on small business regulation.

Tax code: The small business have to pay a regular government taxes the main they check
knowing which taxes are to be paid, and when it is to pay them. It also includes the business
account for the upcoming time their different taxes (Woodard, 2021).
Income tax: As majority of companies are filling income tax return on annual basis. The small
business have to pay this tax on the basis of earning of income from the business process.
Estimated tax: This tax method lets offers an alternative to pay the income tax in the complete
year.
Employment and labor law: The government have made different regulation so that any
business's unit has to follow as if the business in new in the market then they can take the
advantages of the laws related to labor. The resources assist to evaluate the laws of employment
which are being applied in the business. There are different laws that has to be followed by
organization to sustain in the market (Cantele and Zardini, 2018). The wages and hours are being
favourable to the employees who are working for the company. As per this act the employees are
allotted a minimum employees and payment of overtime is also payed to the employees
regularly. The companies also follows the equal opportunities laws in this the managers of the
company provide equal opportunities to all the employees and majority of employees having
more than 15 employees follow this law.
Union: if the business have certain union in its work force then they have to make a good
relations so that employees are motivated towards the work.
CONCLUSION
In case of new business organisation decision-making play an important role. Income
statement and all other financial records play a positive role that denote the financial position of
the business organisation. Different legislative functions also involve in operating business
operation of company.

REFERENCES
Books and journals
Antcliff, V., Lupton, B. and Atkinson, C., 2020. Why do small businesses seek support for
managing people? Implications for theory and policy from an analysis of UK small
business survey data. International Small Business Journal, p.0266242620974586.
Kunaka, C. and Moos, M.N., 2019. Evaluating mentoring outcomes from the
perspective of entrepreneurs and small business owners. The Southern African Journal
of Entrepreneurship and Small Business Management. 11(1). pp.1-11.
Cantele, S. and Zardini, A., 2018. Is sustainability a competitive advantage for small businesses?
An empirical analysis of possible mediators in the sustainability–financial performance
relationship. Journal of Cleaner Production. 182. pp.166-176.
Dessi, C. and Floris, M., 2017. Customer Relationship Management in Small Business: State of
the Art and New Perspectives. In The 6th International Research Symposium (2017).
Dynarski, S. and et.al., 2018. Closing the gap: The effect of a targeted, tuition-free promise on
college choices of high-achieving, low-income students (No. w25349). National Bureau
of Economic Research.
Elo, M. and Vincze, Z., 2019. Transnational intrapreneurship: opportunity development in
transnational teams in the Nordic periphery. International Journal of Entrepreneurship
and Small Business. 36(1-2). pp.103-125.
Farrell, T.W. And et. al., 2020. AGS position statement: resource allocation strategies and age‐
related considerations in the COVID‐19 era and beyond. Journal of the American
Geriatrics Society. 68(6). pp.1136-1142.
Gangadhar, N., 2018. Understanding transnational entrepreneurship. International Journal of
Advances in Agriculture Sciences.
Guha, S., Harrigan, P. and Soutar, G., 2018. Linking social media to customer relationship
management (CRM): A qualitative study on SMEs. Journal of Small Business &
Entrepreneurship. 30(3). pp.193-214.
Neubert, M., 2018. Internationalisation behaviour of small and medium-sized enterprises from
emerging markets: implications for sustainability. Latin American Journal of
Management for Sustainable Development. 4(3). pp.226-238.
Panfilova, E. and et. al., 2020. The impact of cost allocation on key decisions of supply chain
participants. International Journal of Supply Chain Management. 9(1). pp.552-558.
Woodard, R., 2021. Waste Management in Small and Medium Enterprises (SMEs): compliance
with duty of care and implications for the circular economy. Journal of Cleaner
Production. 278. p.123770.
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